Operations research
Operations research, operational research, or simply OR, is the use of
mathematical models, statistics and algorithms to aid in decision-making. It is most often used to analyze complex real-world systems, typically with the goal of improving or optimizing performance. It is one form of applied mathematics.
Operations research in context
The terms operations research and management science are often
used synonymously. When a distinction is drawn, management science
generally implies a closer relationship to the problems of business
management.
Operations research also closely relates to
industrial engineering. Industrial engineering takes more of an engineering point of view, and industrial engineers typically consider OR
techniques to be a major part of their toolset.
Some of the primary tools used by operations researchers are statistics,
optimization,
stochastics, queueing theory, game theory,graph theory and simulation.
Because of the computational nature of these fields OR also has ties
to computer science, and operations researchers regularly use
custom-written or off-the-shelf software.
Operations research is distinguished by its ability to look at and
improve an entire system, rather than concentrating only on specific
elements (though this is often done as well). An operations
researcher faced with a new problem is expected to determine which
techniques are most appropriate given the nature of the system,
the goals for improvement, and constraints on time and computing
power. For this and other reasons, the human element of OR is vital.
Like any tools, OR techniques cannot solve problems by themselves.
Areas of application
A few examples of applications in which operations research is currently
used include the following:
- designing the layout of a factory for efficient flow of
materials
- constructing a telecommunications network at low cost while still
guaranteeing quality service if particular connections become very busy
or get damaged
- determining the routes of school buses so that as few buses are
needed as possible
- designing the layout of a computer chip to reduce manufacturing
time (therefore reducing cost)
- managing the flow of raw materials and products in a supply chain
based on uncertain demand for the finished products
Professional Societies
The International Federation of
Operational Research Societies (IFORS, http://www.ifors.org/) is an umbrella organization
for operations research societies worldwide. Significant among these
are the Institute for Operations
Research and the Management Sciences (INFORMS, http://www.informs.org/) and the Operational
Research Society (http://www.orsoc.org.uk/). EURO is the association of European Operational Research Societies (http://www.euro-online.org). ASOR is the Australian Society for Operations
Research (http://www.asor.ms.unimelb.edu.au/)
Origins and the name
Although foundations were laid earlier, the field of operations
research as we know it arose during World War II, as military
planners in the United Kingdom (including Patrick Blackett and Frank Yates) and in the United States looked for ways to make better decisions in such areas as logistics and training schedules. After the war it began to be
applied to similar problems in industry.
It is known as "operational research" in the United Kingdom and as
"operations research" in most other English-speaking countries, though
OR is a common abbreviation everywhere. The name is somewhat
unfortunate, since OR is no longer concerned only with operations, nor
does its application involve any research in the traditional sense
(though OR research is still carried out to find new or better
techniques).
See also
Finding related topics
Other links
A comprehensive set of OR links is located at the INFORMS OR/MS Resource Collection: http://www.informs.org/Resources/
Referenced By
Branch and bound | Classical Economics | Combinatorial optimization | Costs of production | Economic | EconomicS | Economic policies | Economic policy | Economic science | Economics/Old talk | Economics articles (master list) | Economics basic topics | List of economics articles | List of economics topics | List of mathematical topics (M-O) | Modern economics | Optimization
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